Addis Ababa, 2 October 2014 (WIC) – The World Bank’s Board of Executive Directors on Tuesday approved a US$600 million credit to fund Ethiopia’s social productive safety nets project.
Ethiopia first ran the project in 2005 and the World Bank says the East African country has managed to score some commendable successes.
Since its launch, the Bretton Woods Institute says it has witnessed the programme make notable contributions in reducing household vulnerability and food insecurity, improve resilience to shocks and promote sustainable community development in rural areas across Ethiopia.
The program will be expanded across the country to eventually reach up to 10 million people each year.
The new PSNP4 project, supported by the World Bank through the International Development Association, plans to contribute in poverty reduction and promoting shared prosperity by providing a safety net for Ethiopia’s food insecure people.
To face the challenges of improving nutrition, PSNP4 will provide support to the country’s nutritional goals and address long-term income challenges, among other things.
World Bank’s country director for Ethiopia, Guang Chen said “since its launch nearly a decade ago, the productive safety net programme has made unparalleled contributions not only to food security and Ethiopia’s progress in meeting many of the MDG goals, but to reversing land degradation”.
Chen added that the new PSNP4 “will build on these successes”.
“And also support the development of long-term social protection systems and disaster risk management. I am very pleased that the program will be expanded across the country to eventually reach up to 10 million people each year,” he said.
The PSNP4 will be implemented in 411 districts in Ethiopia, reaching up to 10 million food insecure people per year.
The project includes a total budget of approximately $3.6 billion from the government and 11 international development partners, including the World Bank.